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of <h1>Appeal allowed for statistical purposes, trust's validity under scrutiny.</h1> <h3>NANDINI EDUCATIONAL & CHARITABLE TRUST Versus COMMISSIONER OF INCOME TAX-I LUCKNOW</h3> NANDINI EDUCATIONAL & CHARITABLE TRUST Versus COMMISSIONER OF INCOME TAX-I LUCKNOW - TMI Issues:1. Rejection of registration under section 12AA based on non-compliance with Indian Trust Act, 1882 and commercial activities.2. Applicability of Indian Trust Act, 1882 to public charitable trusts.3. Requirement for CIT to assess trust's objects and activities for registration under section 12AA.4. Validity of trust under Indian Trust Act, 1882 or section 92 of CPC for registration.Analysis:1. The appeal was against the rejection of registration under section 12AA due to non-compliance with the Indian Trust Act, 1882 and alleged commercial activities of the trust. The assessee argued that the Indian Trust Act, 1882 applies to private trusts, not public charitable trusts governed by section 92 of CPC. The CIT's role is to assess the trust's objects and activities for registration, not the compliance with the Indian Trust Act, 1882.2. The Revenue supported the CIT's decision, emphasizing that without a valid trust, registration under section 12AA cannot be granted. The CIT highlighted specific clauses of the trust deed not aligning with the Indian Trust Act, 1882, leading to the conclusion that the trust was not valid. The CIT's order was based on the trust's activities not conforming to the provisions of the Indian Trust Act, 1882.3. The Tribunal considered both arguments and found that the CIT's decision was based on the Indian Trust Act, 1882's provisions not being followed by the trust. The Tribunal noted that the assessee claimed to be a public charitable trust governed by section 92 of CPC, but no such argument was presented before the CIT. The matter was remanded back to the CIT for a thorough examination, including the trust's validity under the Indian Trust Act, 1882 or section 92 of CPC.4. The Tribunal emphasized the need for the CIT to determine if the trust is valid under the Indian Trust Act, 1882 or section 92 of CPC before assessing the trust's objects and activities for registration under section 12AA. The decision to grant registration is reserved for trusts and specified institutions, not other entities. The appeal was allowed for statistical purposes, and the matter was referred back to the CIT for a comprehensive review based on the arguments presented.
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